New Brunswick can’t sue auditor after being left on hook for millions, Supreme Court rules

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New Brunswick can’t sue auditor after being left on hook for millions, Supreme Court rules
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In a 7-0 decision today, the Supreme Court of Canada ruled New Brunswick did not file its claim against Grant Thornton within the allowable time limit

This translation has been automatically generated and has not been verified for accuracy.The Supreme Court of Canada says New Brunswick cannot sue accounting firm Grant Thornton over an allegedly flawed audit which led the province to backstop hefty loans to a company that soon ran into financial trouble.

Events in the case began when the Atcon group of companies secured $50-million in loan guarantees from the province after Grant Thornton carried out an audit of Atcon’s financial statements for the fiscal year ending Jan. 31, 2009.Atcon ran out of working capital four months later, prompting the bank that loaned the money to seek the total amount of the guarantees, which the province paid in early 2010.

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